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Impact of the Global Recession 2022 on Startups and Businesses - How to Tackle the same?


Inflation means too much money in the hands of people which in turn increases the demand and the supply amount is safe as before. A lot of demand with fewer supplies leads to raising the prices of supply items or things which leads to a lot of money in the money but less purchasing power. To curb inflation, the govt or the central bank will reduce the money supply in the market through their monetary operations and this leads to recession.

In a recession, due to a cut in money supply people suffer with less money, and jobs are lost because companies try to handle their profit margins by cutting off the production costs. The economy increased in inflation and became stagnant during the recession period.

The recession is a drop in demand. It happens when there is a surplus of production and scarcity of demand. Markets self-correct this by reducing the market price but when the extent of the surplus and scarcity is much more than the market's ability to self-correct then it's a...

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